Beijing’s securities regulator assures mainland investors their offshore accounts and holdings will not face forced closure or liquidation.
China’s securities regulator stated its crackdown on illegal cross-border investments will not result in the forced closure or liquidation of offshore accounts holding $54 billion in assets. The clarification follows investor concerns after Beijing targeted unauthorized securities trading last month, prompting some to explore options in Hong Kong to retain access to foreign markets.
The China Securities Regulatory Commission (CSRC) confirmed that overseas brokerages can continue serving mainland clients for legitimate offshore activities. The statement aims to ease confusion over the fate of investments in offshore accounts, estimated at $54 billion by Kaiyuan Securities. Earlier fears of forced liquidation had triggered a sell-off in U.S.-listed Chinese stocks after the May 22 announcement.
The CSRC emphasized that investor assets remain unaffected by the rectification campaign, with no mandatory account closures or asset seizures. The move seeks to balance regulatory enforcement with investor protection amid heightened scrutiny of cross-border financial flows.